Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May:
1. Received cash from owner as additional investment $ \$ 55,000 $
2. Paid creditors on ac count $ \$ 7,000 $.
3. Billed customers for services on account $ \$ 2,565 $.
4. Received cash from customers on accounts $ \$ 8,450 $.
5. Paid cash to owner for personal use, $ \$ 2,500 $.
6. Received the utility bill $ \$ 160 $, to be paid next month. Indicate the effect of each transaction on the accounting equation:
1) By Account type - (A) assets, (
L)liabilities, (
O)owner's (
E) equity, (
R)revenue, and (
E) expense 2) Name of Account for the entry 3) The amount by of the transaction 4) Indicate the direction of change in the account that is affected. Note: Each transaction has two entries.

Question

Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May:
 1. Received cash from owner as additional investment $ \$ 55,000 $ 
2. Paid creditors on ac count $ \$ 7,000 $.
3. Billed customers for services on account $ \$ 2,565 $.
4. Received cash from customers on accounts $ \$ 8,450 $.
5. Paid cash to owner for personal use, $ \$ 2,500 $.
6. Received the utility bill $ \$ 160 $, to be paid next month. Indicate the effect of each transaction on the accounting equation:
1) By Account type - (A) assets, (
L)liabilities, (
O)owner's (
E) equity, (
R)revenue, and (
E) expense 2) Name of Account for the entry 3) The amount by of the transaction 4) Indicate the direction of change in the account that is affected. Note: Each transaction has two entries.

Quizplus · Accepted Answer

The Answer of Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May:
 1. Received cash from owner as additional investment $ \$ 55,000 $ 
2. Paid creditors on ac count $ \$ 7,000 $.
3. Billed customers for services on account $ \$ 2,565 $.
4. Received cash from customers on accounts $ \$ 8,450 $.
5. Paid cash to owner for personal use, $ \$ 2,500 $.
6. Received the utility bill $ \$ 160 $, to be paid next month. Indicate the effect of each transaction on the accounting equation:
1) By Account type - (A) assets, (
L)liabilities, (
O)owner's (
E) equity, (
R)revenue, and (
E) expense 2) Name of Account for the entry 3) The amount by of the transaction 4) Indicate the direction of change in the account that is affected. Note: Each transaction has two entries.

Daniels Company Is Owned and Operated by Thomas Daniels $55,000 \$ 55,000 $55,000

Daniels Company Is Owned and Operated by Thomas Daniels $\$ 55,000$